Tempo Trading Strategies

Tempo Trading Strategies

Price continuously oscillates, moving in waves, up, down, up, down in unpredictable frequency and amplitude. In an ideal situation, a trader will buy at the bottom of a wave (go long) as prices are coming down and are about to turn up, then sell for a profit at the top of the next upturn. Similarly, a trader would sell at the top of a wave (go short) as prices are coming up and are about to turn down, then buy for a profit at the bottom of the next downturn (cover their short.)

Tempo is a collection of strategies expertly designed to optimize the trading of futures. Tempo runs on the NinjaTrader trading platform. Tempo can be applied to multiple instruments simultaneously and takes both long and short positions.

Tempo contains proprietary models (strategies) designed to seek the ideal entry points on waves. Tempo puts out orders to either buy at the bottom or sell short at what it predicts will be the top. After the system takes a buy (takes a long position), or a short sell (takes a short position), Tempo then puts an order (a sell order higher than the entry price, in the case of longs and a buy order lower than the entry price in the case of shorts) at a price where it predicts the price will go. As price continues to move, Tempo can readjust exit prices. Tempo is also designed to place a stop order (a buy order lower than the entry price, in the case of longs and a sell order higher than the entry price in the case of shorts.) This function exists  to allow exiting (closing out the trade/going flat) whenever the prediction is out of sync with the current wave being traded.

It has been said that the market oscillates in ranges for 80% of the time and trends about 20% of the time.  This statistic may be accurate but a major danger for traders is when it suddenly switches from one to the other. This can result in massive losses. Tempo is equipped with multiple models that expertly ride the market waves.

Tempo’s ability to optimize trading opportunities is magnified when combined with the human ability to exercise the patience and good judgement required to make two basic decisions.  When to deploy the system and when to shut it down.

It really is that simple.

Futures Instruments Traded

Tempo could be used to trade the following futures:

  • ES - S&P 500
  • 6E - Euro
  • 6C - Canadian Dollar
  • 6S - Swiss Franc
  • NG - Natural Gas
  • 6B - British Pound
  • 6J - Japanese Yen
  • 6A - Australian Dollar
  • and many others such as ZB –30 year bond, crude oil, gold and the 10 year note